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Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-For-Sale Fixed Maturities

Available-for-sale fixed maturities at June 30, 2022 and December 31, 2021 included the following:

			June 30, 2022
(In thousands)			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations			$	238,350					$	—					$	86					$	16,692					$	221,744
U.S. Government-sponsored enterprise obligations			18,820						—						8						1,195						17,633
State and municipal bonds			504,920						—						353						32,105						473,168
Corporate debt			1,961,538						553						775						171,752						1,790,008
Residential mortgage-backed securities			426,956						—						1,006						42,737						385,225
Agency commercial mortgage-backed securities			12,542						—						—						602						11,940
Other commercial mortgage-backed securities			224,848						—						246						16,607						208,487
Other asset-backed securities			442,763						—						1,599						20,752						423,610
			$	3,830,737					$	553					$	4,073					$	302,442					$	3,531,815

			December 31, 2021
(In thousands)			Amortized Cost												Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations			$	239,765											$	1,166					$	2,424					$	238,507
U.S. Government-sponsored enterprise obligations			20,467												29						262						20,234
State and municipal bonds			511,750												9,620						2,174						519,196
Corporate debt			1,884,455												29,050						14,949						1,898,556
Residential mortgage-backed securities			455,438												4,254						5,751						453,941
Agency commercial mortgage-backed securities			13,909												294						62						14,141
Other commercial mortgage-backed securities			231,226												2,530						2,273						231,483
Other asset-backed securities			457,837												2,747						2,920						457,664
			$	3,814,847											$	49,690					$	30,815					$	3,833,722

Schedule of Available-For-Sale Securities by Contractual Maturity

The recorded cost basis and estimated fair value of available-for-sale fixed maturities at June 30, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In thousands)			Amortized Cost						Due in one year or less						Due after one year through five years						Due after five years through ten years						Due after ten years						Total Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations			$	238,350					$	20,903					$	124,255					$	75,245					$	1,341					$	221,744
U.S. Government-sponsored enterprise obligations			18,820						1,903						11,775						3,831						124						17,633
State and municipal bonds			504,920						30,387						162,224						165,598						114,959						473,168
Corporate debt			1,961,538						165,213						823,381						698,491						102,923						1,790,008
Residential mortgage-backed securities			426,956																														385,225
Agency commercial mortgage-backed securities			12,542																														11,940
Other commercial mortgage-backed securities			224,848																														208,487
Other asset-backed securities			442,763																														423,610
			$	3,830,737																													$	3,531,815

Schedule of Investments Held in an Unrealized Loss Position

The following tables provide summarized information with respect to investments held in an unrealized loss position at June 30, 2022 and December 31, 2021, including the length of time the investment had been held in a continuous unrealized loss position.

			June 30, 2022
			Total												Less than 12 months												12 months or longer
			Fair						Unrealized						Fair						Unrealized						Fair						Unrealized
(In thousands)			Value						Loss						Value						Loss						Value						Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations			$	214,422					$	16,692					$	198,517					$	15,632					$	15,905					$	1,060
U.S. Government-sponsored enterprise obligations			17,509						1,195						13,571						732						3,938						463
State and municipal bonds			410,783						32,105						385,075						29,482						25,708						2,623
Corporate debt			1,644,974						171,752						1,430,094						143,101						214,880						28,651
Residential mortgage-backed securities			361,015						42,737						296,993						33,182						64,022						9,555
Agency commercial mortgage-backed securities			11,940						602						9,724						448						2,216						154
Other commercial mortgage-backed securities			202,104						16,607						185,243						15,068						16,861						1,539
Other asset-backed securities			384,308						20,752						354,863						18,805						29,445						1,947
			$	3,247,055					$	302,442					$	2,874,080					$	256,450					$	372,975					$	45,992

			December 31, 2021
			Total												Less than 12 months												12 months or longer
			Fair						Unrealized						Fair						Unrealized						Fair						Unrealized
(In thousands)			Value						Loss						Value						Loss						Value						Loss
Fixed maturities, available-for-sale
U.S. Treasury obligations			$	190,054					$	2,424					$	181,689					$	2,206					$	8,365					$	218
U.S. Government-sponsored enterprise obligations			16,287						262						16,287						262						—						—
State and municipal bonds			175,442						2,174						171,930						2,039						3,512						135
Corporate debt			945,196						14,949						866,731						11,828						78,465						3,121
Residential mortgage-backed securities			326,248						5,751						290,019						4,320						36,229						1,431
Agency commercial mortgage-backed securities			4,529						62						4,355						54						174						8
Other commercial mortgage-backed securities			151,827						2,273						145,467						1,884						6,360						389
Other asset-backed securities			278,915						2,920						271,463						2,796						7,452						124
			$	2,088,498					$	30,815					$	1,947,941					$	25,389					$	140,557					$	5,426

Schedule of a Roll Forward of Cumulative Credit Losses Recorded in Earnings Related to Impaired Debt Securities

The following tables present a roll forward of the allowance for expected credit losses on available-for-sale fixed maturities for the three and six months ended June 30, 2022 and six months ended June 30, 2021. There was no allowance for expected credit losses for the three months ended June 30, 2021.

									Three Months Ended June 30, 2022
(In thousands)									Corporate Debt															Total
Balance, at April 1, 2022									$	—														$	—
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized									553															553
Balance, at June 30, 2022									$	553														$	553

									Six Months Ended June 30, 2022
(In thousands)									Corporate Debt															Total
Balance, at December 31, 2021									$	—														$	—
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized									553															553
Balance, at June 30, 2022									$	553														$	553

									Six Months Ended June 30, 2021
(In thousands)									Corporate Debt															Total
Balance, at December 31, 2020									$	552														$	552
Reductions related to:
Securities sold during the period									(552)															(552)
Balance, at June 30, 2021									$	—														$	—

The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the impairment was recorded in OCI.

			Three Months Ended June 30												Six Months Ended June 30
(In thousands)			2022						2021						2022						2021
Balance beginning of period			$	—					$	—					$	—					$	552
Additional credit losses recognized during the period, related to securities for which:
No impairment has been previously recognized			553						—						553						—
Reductions due to:
Securities sold during the period (realized)			—						—						—						(552)
Balance June 30			$	553					$	—					$	553					$	—

Schedule of Other Information Regarding Available-For-Sale Securities

Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows:

			Three Months Ended June 30												Six Months Ended June 30
(In millions)			2022						2021						2022						2021
Proceeds from sales (exclusive of maturities and paydowns)			$	38.8					$	196.2					$	102.3					$	258.1
Purchases			$	109.1					$	423.3					$	340.7					$	765.5

Schedule of Net Investment Income

Net investment income (loss) by investment category was as follows:

			Three Months Ended June 30												Six Months Ended June 30
(In thousands)			2022						2021						2022						2021
Fixed maturities			$	22,006					$	18,157					$	43,550					$	33,848
Equities			967						448						1,668						1,142
Short-term investments, including Other			727						678						1,153						952
BOLI			261						686						214						1,130
Investment fees and expenses			(2,017)						(2,552)						(4,198)						(4,638)
Net investment income			$	21,944					$	17,417					$	42,387					$	32,434

Schedule of Investment in Unconsolidated Subsidiaries

ProAssurance's investment in unconsolidated subsidiaries were as follows:

			June 30, 2022									Carrying Value
(In thousands)			Percentage Ownership									June 30, 2022						December 31, 2021
Qualified affordable housing project tax credit partnerships			See below									$	7,207					$	12,424
All other investments, primarily investment fund LPs/LLCs			See below									314,705						323,152
												$	321,912					$	335,576

Schedule of Equity Method Investments

The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:

			Three Months Ended June 30												Six Months Ended June 30
(In thousands)			2022						2021						2022						2021
Qualified affordable housing project tax credit partnerships
Losses recorded			$	2,809					$	4,752					$	5,197					$	8,121
Tax credits recognized			$	1,198					$	3,330					$	2,403					$	6,654
Historic tax credit partnership
Losses (gains) recorded*			$	(961)					$	—					$	(961)					$	(182)
Tax credits recognized			$	—					$	50					$	—					$	100
*ProAssurance holds a historic tax credit partnership which was fully amortized in 2020. This partnership generated investment returns by providing benefits to partnership investors in the form of tax credits, tax deductible project operating losses and distributions resulting from positive cash flows. ProAssurance received a distribution associated with this investment during the second quarter of 2022 and the first quarter of 2021, as a result of positive cash flows from a completed project, which was recognized as an operating gain in each respective period.

The following table presents aggregated gross summarized financial information for the funds that ProAssurance determined to be significant as of June 30, 2022, including the portion not attributable to ProAssurance, derived from the funds' financial statements which are prepared in accordance with GAAP. As the majority of ProAssurance's equity method investments report their results to the Company on a one quarter lag, the majority of the summarized financial information below is for the six months ended March 31, 2022 and 2021.

(In thousands)			Six Months Ended June 30
			2022						2021
Net investment income (loss)			$	11,049					$	(2,836)
Net investment gains (losses)			78,586						6,398
Net change in unrealized appreciation (depreciation)			190,089						142,473
Operating Expenses			2,656						3,432
Net gain (loss)			$	277,068					$	142,603
Net gain (loss) attributable to ProAssurance(1)			$	1,370					$	835

(1) Represents ProAssurance's share of the funds' aggregate income or loss, which is included as a component of equity in earnings (loss) of unconsolidated subsidiaries in its Condensed Consolidated Statements of Income and Comprehensive Income for the six months ended June 30, 2022 and 2021.

Schedule of Net Realized Investment Gains (Losses)

Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net investment gains (losses):

			Three Months Ended June 30												Six Months Ended June 30
(In thousands)			2022						2021						2022						2021
Total impairment losses:
Corporate debt			$	(972)					$	—					$	(972)					$	—
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt			419						—						419						—
Net impairment losses recognized in earnings			(553)						—						(553)						—
Gross realized gains, available-for-sale fixed maturities			265						6,021						1,452						10,315
Gross realized (losses), available-for-sale fixed maturities			(965)						(352)						(2,089)						(539)
Net realized gains (losses), trading fixed maturities			(21)						(8)						(97)						64
Net realized gains (losses), equity investments			(5,125)						2,001						(5,346)						6,190
Net realized gains (losses), other investments			(760)						1,297						(110)						4,493
Change in unrealized holding gains (losses), trading fixed maturities			(455)						(226)						(781)						(440)
Change in unrealized holding gains (losses), equity investments			(5,923)						1,700						(17,408)						(1,237)
Change in unrealized holding gains (losses), convertible securities, carried at fair value			(10,584)						529						(13,059)						339
Other			237						(129)						601						497
Net investment gains (losses)			$	(23,884)					$	10,833					$	(37,390)					$	19,682

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